Halo Labs Inc. (NEO: HALO)(OTCQX: AGEEF) has exercised its Mendo Distribution and Transportation’s (MDT) option to purchase Outer Galactic Chocolates, which is a holder of a Type N manufacturing license. MDT was recently acquired by Halo through a merger on January 9, 2020.
Kiran Sidhu, Halo CEO and Co-Founder said, “Obtaining a Type N manufacturing license in California for the production of infused and edible products is a step in diversifying Halo’s product offering in this growth category. Not only are we building new lines around award-winning expertise in OGC, we will support expanded distribution of OGC-branded chocolates to Southern California.”
The acquisition will give Halo a license to produce infused and edible cannabis products adjacent to the MDT facility in Ukiah, California. A Type N license permits manufacturers to conduct most activities including packaging and labeling, however, it does not allow for extraction. For extraction in California, Halo utilizes its Type 7 licensed facility in Cathedral City, California.
In addition to obtaining the Type N license in California, Halo said it plans to execute a management agreement with the current management of OGC to aid in the transition and buildout of the business, which will include the introduction of both Halo-branded and other white label infused products. A strategic partnership with existing management will provide a strong base for the development of new edible cannabis products in California under the Hush® brand through channels and clientele already established by OGC.
Earlier this week the company also stated that it was expanding its offering on the leading online cannabis marketplace Eaze, to include the Hush product line. Halo already successfully sells its premium GILT branded DabTabs on Eaze and will now introduce the Hush line of vape cartridges, shatter, concentrate, edibles and tinctures. The Hush brand is synonymous with high-quality cannabis products at an affordable price and is now available for delivery throughout California and Oregon. Following this second rollout of products on Eaze, Halo said expects to release more product lines on the marketplace in the future.
Eaze Director of Brand Development Owen Ruh said, “In concept and execution Halo has proven to be an innovative and dependable partner to Eaze, with products that are very popular with our customers. It’s a great time to expand the relationship and we’re excited to see what it brings.
The company also said that Bophelo Bioscience & Wellness has started the certification process required to achieve European Good Agricultural and Collection Practices accreditation for cannabis grown at the Company’s 205-hectare cultivation site at Bophelo in Lesotho, Africa.
Obtaining EU GACP certification would allow Halo to export medicinal cannabis and Cannabis-Based Products for Medicinal use to the United Kingdom as well as countries in the European Union. According to Prohibition Partners, the CBPM market in the UK is comprised of 1.4 million consumers who use CBPMs for health treatments with an additional 4.7 million recreational cannabis users. This translate to a medical cannabis market that is predicted to be worth roughly $1.3 billion by 2024.
To achieve EU GACP accreditation, Halo said it has engaged Pharmaconsulta Limited, an independent firm based out of Malta in Europe, that specializes in pharmaceutical regulatory affairs.
Sidhu added, “We are extremely pleased at the speed at which we are realizing our strategic vision for Bophelo. By the time the maiden harvest is complete the facility is expected to be fully certified and ready to export legal cannabis. International exportation is currently an untapped opportunity for Halo and will add sizeable, incremental topline revenue. We also look forward to delivering innovative strains with the DNA genetics partnership to future harvests. With three grow seasons a year anticipated at Bophelo, we expect to establish ourselves quickly as one of the leading suppliers of consistently high-quality cannabis to regulated international markets.”